Excise Tax Setting in a Dynamic Space-Time Framework
31 Pages Posted: 1 Jul 2015
Date Written: June 29, 2015
Abstract
This study develops a simple model for analyzing excise tax setting in a competitive framework. Then, this study utilizes a dynamic space-time panel econometric model to explore cigarette and beer tax rate setting from U.S. states from 1960-2007. The empirical findings support the model predictions. Both cigarette and beer taxes are highly persistent, but cigarette tax rates are more competitive (spatially correlated) across states.
Keywords: horizontal tax competition, dynamic space-time model, spatial econometrics
JEL Classification: C31, C23, H71, H73
Suggested Citation: Suggested Citation
Hoffer, Adam J. and Lacombe, Donald J., Excise Tax Setting in a Dynamic Space-Time Framework (June 29, 2015). Available at SSRN: https://ssrn.com/abstract=2624765 or http://dx.doi.org/10.2139/ssrn.2624765
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.